2-8 These financial statement items are for Barone Corporation at year-end, July 31, 2010. Salaries Payable 2,080 Salaries Expense 51,700 Utilities expense 22,600 Equipment 18,500 Accounts Payable 4,000 Commission revenue 66,100 Rent revenue 8,500 Long-term note payable 1,800 Common Stock 16,000 Cash 29,200 Accounts Receivable 9,780 Accumulated depreciation 6,000 Dividends 4,000 Depreciation expense 4,000 Retained earnings 35,200 Suppose that you are the president of Allied Equipment. Your sales manager has approached you with a proposal to sell $20,000 of equipment to Barone. He would like to provide a loan to Barone in the form of 10%, 5-year note payable. Evaluate how this loan would change Barrone's current ratio and debt to total assets ratio and discuss whether you would make the sale